Krynica Vitamin SA

Krynica Vitamin's capital structure shows a debt-to-equity ratio of 0.66, indicating a moderate reliance on debt financing. The company's liquidity position is weak, with a current ratio of 0.82 and only PLN 599,000 in cash and equivalents, which is significantly lower than its total liabilities of PLN 145.86 million. The company's price-to-book ratio of 1.94 suggests that the market values the company at a premium to its book value, but this is not supported by strong profitability metrics.

Profitability metrics are concerning, with a negative return on equity (ROE) of -1.41% and a negative return on assets (ROA) of -0.5%. These figures indicate that the company is not generating returns for its shareholders or effectively utilizing its assets. The operating income is negative at PLN -739,000, and the net income is also negative at PLN -1.14 million, which is far below the industry median for profitability.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the risk associated with the company's revenue streams, as it is highly dependent on the performance of its primary market. The company's revenue of PLN 82.18 million is derived from the production and sale of vitamin and mineral supplements, with no significant international operations reported.

The company's growth trajectory is uncertain, with a negative operating income and net income in the latest reporting period. The outlook for the current fiscal year (FY) is not provided, but the negative financial performance suggests a challenging environment. The company's free cash flow of PLN 1.19 million is modest and may not be sufficient to fund future growth initiatives or debt obligations. The capital expenditure of PLN -1.11 million indicates some investment in the business, but it is not enough to offset the negative operating results.

Risk factors include the company's weak liquidity position and negative net cash after subtracting total debt. The risk assessment indicates a medium liquidity risk and a low dilution risk, but the negative financial performance and high debt levels pose significant operational and financial risks. The company's ability to generate positive cash flows and improve its profitability will be critical in mitigating these risks.

Recent events and disclosures include the latest actual EPS of 0.58 PLN and revenue of 296.78 million PLN, as reported by analysts. These figures suggest that the company's performance is below expectations, and there is a need for strategic improvements to enhance profitability and cash flow generation. The company's financial health is closely tied to its ability to manage costs and increase sales in its primary market.

Long-term debt decreased significantly to PLN 26.5 million in 2020, indicating improved leverage management compared to prior periods.

Free cash flow turned positive to PLN 17.4 million in 2020, demonstrating operational cash generation capability despite net losses.

The company maintains a debt-to-equity ratio of 0.66, which is below the cohort median of 0.18, suggesting manageable leverage.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity value erosion.

Capex to revenue ratio of -1.35% is above the 75th percentile, indicating lower capital intensity than peers.

Credit risk is flagged as high, indicating substantial potential for financial distress or default issues for the company.

Return on equity stands at negative 1.41%, placing the company in the bottom quartile of its non-alcoholic beverage cohort.

Revenue declined 4.8% year-over-year to PLN 359.2 million, showing an inability to maintain top-line growth momentum.

Revenue PLN 100.8M, −10,7% YoY; Operating income −18,1% YoY.

• ▍Revenue PLN 100.8M, −10,7% YoY
• ▍Operating income −18,1% YoY
• ▍Net income −23,8% YoY
• ▍Free cash flow −17,7% YoY
• ▍Net margin 5.0%

Revenue PLN 107.4M, +1,2% YoY; Operating income +8,4% YoY.

• ▍Revenue PLN 107.4M, +1,2% YoY
• ▍Operating income +8,4% YoY
• ▍Net income +4,1% YoY
• ▍Free cash flow +35,9% YoY
• ▍Net margin 5.9%

Revenue PLN 79.6M, −3,1% YoY; Operating income +196,8% YoY.

• ▍Revenue PLN 79.6M, −3,1% YoY
• ▍Operating income +196,8% YoY
• ▍Net income +181,4% YoY
• ▍Free cash flow +169,3% YoY
• ▍Net margin 1.2%

Revenue PLN 86.3M; Operating income PLN 314.0k.

• ▍Revenue PLN 86.3M
• ▍Operating income PLN 314.0k
• ▍Net margin 0.8%

Revenue PLN 112.9M; Operating income PLN 8.5M.

• ▍Revenue PLN 112.9M
• ▍Operating income PLN 8.5M
• ▍Net margin 5.8%

Revenue PLN 356.3M, −8,2% YoY; Operating income −1,1% YoY.

• ▍Revenue PLN 356.3M, −8,2% YoY
• ▍Operating income −1,1% YoY
• ▍Net income −2,3% YoY
• ▍Free cash flow +11,7% YoY
• ▍Net margin 3.4%

Revenue PLN 387.9M, +8,0% YoY; Operating income +653,1% YoY.

• ▍Revenue PLN 387.9M, +8,0% YoY
• ▍Operating income +653,1% YoY
• ▍Net income +283,1% YoY
• ▍Free cash flow +413,6% YoY
• ▍Net margin 3.2%